Editing Criticism of Microsoft (section)

== Labor practices ==
[[File:Microsoft sign closeup.jpg|thumb|right|The entrance to [[Microsoft Redmond campus]] in [[Redmond, Washington]]]]

Microsoft has been criticized for the use of [[permatemp]] employees (employees employed for years as "temporary," and therefore without medical benefits), use of [[forced retention]] tactics, where departing employees would be sued to prevent departure, as well as more traditional cost-saving measures, ranging from cutting medical benefits to not providing towels in company locker rooms.<ref>{{cite web|url=http://www.businessweek.com/magazine/content/05_39/b3952001.htm|title=Troubling Exits At Microsoft|url-status=dead|archive-url=https://web.archive.org/web/20070502084953/http://www.businessweek.com/magazine/content/05_39/b3952001.htm|archive-date=May 2, 2007}}</ref>

Historically, Microsoft has also been accused of overworking employees, in many cases, leading to [[Burnout (psychology)|burnout]] within just a few years of joining the company. The company is often referred to as a "Velvet Sweatshop", a term which originated in a 1989 ''[[Seattle Times]]'' article,<ref>{{cite news | last=Andrews | first=Paul | title=A 'Velvet Sweatshop' or a High-Tech Heaven? | date=April 23, 1989 | newspaper=The Seattle Times | url=http://www.krsaborio.net/research/1980s/89/890423.htm | url-status=dead | archive-url=https://archive.today/20120629191556/http://www.krsaborio.net/research/1980s/89/890423.htm | archive-date=June 29, 2012 }}</ref> and later became used to describe the company by some of Microsoft's own employees.<ref>{{cite web | title=Editor's note, MSJ August 1997 | website=[[Microsoft]] | url=https://www.microsoft.com/msj/0897/ednote0897.aspx | access-date=September 27, 2005 | archive-url=https://web.archive.org/web/20070214061859/http://www.microsoft.com/msj/0897/ednote0897.aspx | archive-date=February 14, 2007 | url-status=dead }}</ref> This characterization is derived from the perception that Microsoft provides nearly everything for its employees in a convenient place, but in turn overworks them to a point where it would be bad for their (possibly long-term) health. For example, the [[kitchenette]]s have free beverages and many buildings include exercise rooms and showers. However, the company has been accused of attempting to keep employees at the company for exceptionally long hours. This is detailed in several books about Microsoft, including ''Hard Drive: Bill Gates and the Making of the Microsoft Empire''.{{citation needed|date=November 2019}}

A US state lawsuit was brought against Microsoft in 1992 representing 8,558 current and former employees that had been classified as "temporary" and "freelance", and became known as ''[[Vizcaino v. Microsoft]]''. In 1993, the suit became a US Federal Class Action in the United States District Court Western District Of Washington at Seattle as No. C93-178C. The Final Settlement<ref>{{cite web
<!-- looking at page metadata for a "pubdate" -->
| author     = Bendich, Stobaugh and Strong P.C.
| title      = Microsoft "Permatemps" Case
| date       = June 18, 2007
| url        = http://www.bs-s.com/cases/c-microsoft-vizcaino.html
| access-date = October 14, 2009
}}</ref> came in 2005. The case was decided on the (IRS-defined) basis that such "permatemps" had their jobs defined by Microsoft, worked alongside regular employees doing the same work, and worked for long terms. After a series of court setbacks including three reversals on appeal, Microsoft settled the suit for US$97&nbsp;million.

A side effect of the "permatemp" lawsuit is that now contract employees are prevented from participating in team morale events and other activities that could be construed as making them "employees". They are also limited to 18-month contracts and must leave after that time for 6 months before returning under contract.

Microsoft is the largest American corporate user of H-1B guest worker visas and has joined other large technology companies like Google in recently lobbying for looser [[H-1B visa]] restrictions.<ref>{{cite web|url=http://www.ft.com/cms/s/473893dc-ccde-11db-a938-000b5df10621.html|title=Gates warns on US immigration curbs|first=Kevin|last=Allison|date=March 7, 2007|work=Financial Times|access-date=June 9, 2007|archive-url=https://web.archive.org/web/20070616144350/http://www.ft.com/cms/s/473893dc-ccde-11db-a938-000b5df10621.html|archive-date=June 16, 2007|url-status=live}}</ref><ref>{{cite web|url=https://arstechnica.com/news.ars/post/20070607-senators-companies-with-mass-layoffs-shouldnt-hire-more-foreign-workers.html|title=Senators: Companies with "mass layoffs" shouldn't hire more foreign workers|date=June 7, 2007|access-date=June 14, 2017|archive-url=https://web.archive.org/web/20081206123129/http://arstechnica.com/news.ars/post/20070607-senators-companies-with-mass-layoffs-shouldnt-hire-more-foreign-workers.html|archive-date=December 6, 2008|url-status=live}}</ref><ref>{{cite news|url=https://www.washingtonpost.com/wp-dyn/content/article/2007/02/23/AR2007022301697.html|title=How to Keep America Competitive|first=Bill|last=Gates|date=February 25, 2007|newspaper=The Washington Post|access-date=August 22, 2017|archive-url=https://web.archive.org/web/20171214071558/http://www.washingtonpost.com/wp-dyn/content/article/2007/02/23/AR2007022301697.html|archive-date=December 14, 2017|url-status=live}}</ref>

[[Jesse Jackson]] believes Microsoft should hire more [[minorities]] and women. Jackson has urged other companies to diversify their workforce. He believes that Microsoft made some progress when it appointed two women to its board of directors in 2015.<ref>{{cite web|url=http://www.kplu.org/post/rev-jesse-jackson-praises-microsofts-diversity-efforts-urges-company-do-more|title=Rev. Jesse Jackson Praises Microsoft's Diversity Efforts, But Urges The Company To Do More|first=Ashley|last=Gross|access-date=December 3, 2015|archive-url=https://web.archive.org/web/20151208082033/http://www.kplu.org/post/rev-jesse-jackson-praises-microsofts-diversity-efforts-urges-company-do-more|archive-date=December 8, 2015|url-status=dead}}</ref>